Return to Transcripts main page
CNN Newsroom
CNN International: Blinken In Kyiv As Russia Makes Advances In Eastern Ukraine; Riot Police Confront Protestors After Georgia Approves Controversial "Foreign Agents" Bill; Michael Cohen Testifies About Planned Reimbursement For Stormy Daniels Payment. Aired 11a-12p ET
Aired May 14, 2024 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[11:00:28]
RAHEL SOLOMON, CNN INTERNATIONAL HOST: Good morning or good evening, depending on where you're watching. I'm Rahel Solomon live in New York.
Straight ahead, U.S. Secretary of State Antony Blinken is in Ukraine, as the country is in a critical moment in its war against Russia. We'll bring you his remarks live. Then, riot police disperse protesters in Georgia after lawmakers passed a controversial foreign agents bill. We will have the latest developments here. Plus, right now, star witness Michael Cohen is testifying for a second day in Donald Trump's hush money trial. We'll have the latest updates and live updates from inside the court.
Well, we want to begin in Ukraine. During a critical moment in its war against Russia, over the past few days, Moscow's troops have been making gains on the ground, including a surprise border attack in the eastern Kharkiv region. And as Russia makes these gains, Ukraine awaits the deployment of newly arrived U.S. security assistance. There is also a newly approved $54 billion financial aid package from the European Union. In Kyiv, U.S. Secretary of State Antony Blinken met with Ukraine's President Volodymyr Zelenskyy a little earlier on Tuesday. He is also expected to speak in Kyiv at any moment. Of course, we will bring you those comments just as soon as they happen. But, Secretary Blinken was told by President Zelenskyy that Ukraine needs more air defenses like Patriot missiles.
Joining us with the latest now with CNN's Kylie Atwood. She is at the U.S. State Department, and Fred Pleitgen, who is in Berlin. Good to see you both.
Fred, let me start with you. The timing of this visit, it's hard to miss. I mean, Russia is now making these gains on the ground. What more can we expect to hear from Blinken, do you think?
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, first of all, I think you're absolutely right. I think it's an absolutely crucial time and a very difficult time for the Ukrainians and certainly very important for them to have Secretary of State Blinken there on the ground, who acknowledged that right now it is difficult for them. And you did hear also the President of Ukraine, Volodymyr Zelenskyy, thanking the Secretary of State for coming in, and of course the U.S. for OKing that aid package, military aid to the Ukrainians, which is so very key.
And one of the things, Rahel, that you were just talking about is absolutely correct. The President of Ukraine emphasizing that air defense systems right now very crucial to the Ukrainians, especially as they face this new onslaught from the Russians in the northeast of Ukraine, where the Russians are currently pushing across the border there right now.
The Ukrainian President saying that the Ukrainians, he believes, needed two more Patriot U.S.-made surface-to-air missile systems, longer-range surface-to-air missile systems because crucially the Russians are now able to employ their air force and use their air force a lot more effectively than they have in the past. They've managed to put wing and guidance kits on Soviet-era bombs, meaning they can drop them further away from the frontlines. And the Ukrainians are saying the only surface-to-air missile system that can keep those planes away and shoot those planes down is the Patriots. So, that key, but then also, of course, for the Ukrainians getting ammo to the frontline also, and that's why this visit by the Secretary of State so very important to the Ukrainians, militarily, but of course, also politically as well.
SOLOMON: Yeah. Absolutely. And certainly something that many people will be watching around the world. Fred, thank you.
Kylie, let me bring you into this conversation. Blinken has visited Ukraine about four times since Russia's invasion. He has visited the Middle East about half a dozen times since the October 7 attack. He clearly has a lot on his plate. Talk to us about the message of solidarity, of support we may hear from Blinken to Ukraine.
KYLIE ATWOOD, CNN U.S. SECURITY CORRESPONDENT: Yeah. That's right. We are expected to hear that message of solidarity. Rahel. The Secretary of State already said this morning that the United States remains determined to see Ukraine succeed. But, he did acknowledge, he said in his own words that this is a challenging time for Ukraine. Of course, we're more than two years into this conflict. And as Fred was saying, the Russians are making some gains now. But, he was able to come. He is the first Biden administration official to visit Ukraine since that supplemental funding that is enabling those new U.S. weapons shipments to Ukraine to actually head in that direction.
He said they are on their way to Ukraine. Now, that U.S. weaponry, some of those weapons are already have reached the frontlines, and the Secretary of State said that he does expect that that sort of support will have an impact on the battlefield for the Ukrainians. We'll have to watch and see if it actually does, Rahel. But, he is going to be giving a speech later this hour. He is really focused on building of a democratic Ukraine, not just, of course, the military endeavors that Ukraine continues to be focused on, but also on the reform that it needs to undertake in order, of course, to move forth with its bid for NATO and the European Union. [11:05:00]
So, that will be a focus. And in addition to meeting with President Zelenskyy where, as you said, Zelenskyy was thankful for this new U.S. support but also calling for the need for that air defense from the United States. The Secretary of State is also going to be meeting with other Ukrainian lawmakers. He met with the Foreign Minister Kuleba earlier today. He is also going to meet with members of civil society and also members from the public sectors. So, this is a wide- ranging trip for the Secretary of State to make sure that he connects with a wide range of Ukrainians, not just in government, but also in civil society to see what they need to continue keeping their country on its feet.
SOLOMON: Yeah. OK. Kylie Atwood at the U.S. State Department, thank you, and Fred Pleitgen in Berlin, thank you as well. And as soon as the Secretary of State Antony Blinken speaks, we will bring that to you live. So, standby for that.
But, we have also been following this breaking news out of Tbilisi, Georgia. Riot police are confronting protesters in the Georgian capital after Parliament there passed a controversial foreign agents bill. Critics warn that the Russian-style legislation could jeopardize the country's bid to join the European Union.
CNN's Clare Sebastian has more now on the protests and the background on this controversial law.
(BEGIN VIDEOTAPE)
CLARE SEBASTIAN, CNN CORRESPONDENT (voice-over): No to the Russian law, they chant, as they have now for weeks. Young Georgians fighting for a European future they say is under threat.
UNIDENTIFIED MALE: Our duty is to protect our country from Russia and move towards Europe where there is peace.
UNIDENTIFIED FEMALE: We're just going to keep going till there is a better outcome.
SEBASTIAN (voice-over): Last year, protests worked, scenes like this forcing the government to scrap the same so-called foreign agent bill, seen here as a replica of the repressive Russian law and a sign of Moscow's growing influence in this small post-Soviet state. Then, in March, barely three months after gaining EU candidate status, the Georgian government revived the law. In a rare appearance in late April, the ruling party's honorary leader and most powerful driving force lashing out at the West.
BIDZINA IVANISHVILI, FORMER PRIME MINISTER OF GEORGIA (Interpreted): Despite the promises of the 2008 Bucharest Summit, Georgia and Ukraine have not been accepted into NATO and have been left out to dry. All those decisions are made by the global party of war.
SEBASTIAN (voice-over): As protesters grew more determined, the police response escalated, violence widely condemned by the European Union. In this shocking attack on May 1, opposition leader Levan Khabeishvili says he was deliberately targeted, his bruises are still visible.
LEVAN KHABEISHVILLI, CHAIRMAN, GEORGIAN UNITED NATIONAL MOVEMENT (Interpreted): They did not get what they wanted from me. They were filming to upload the video afterwards and to show the opposition leader in a state that would discredit me.
SEBASTIAN (voice-over): And violence not the only means of intimidation. Transparency International says these posters of its local executive director appeared a few days ago outside its offices and those of other NGOs. The text reads "Traitor and Grant Guzzler".
EKA GIGAURI, EXECUTIVE DIRECTOR, TRANSPARENCY INTERNATIONAL: You are under the attack all the time. So, the governmental officials and even the Prime Minister would organize the press conference where they would single you out.
SEBASTIAN: Transparency International is an NGO. I assume you would be subject to this law. What would you have to do and would you do it?
GIGAURI: Yes. We are not going to register. We understand that then government will introduce penalties for us. They might freeze our assets and accounts. It will be very difficult for us to monitor the elections.
SEBASTIAN (voice-over): Recent polls show around 80 percent of Georgians favored joining the EU, something Brussels has warned would been negatively affected by this law. George's opposition now wants Western condemnation to turn to action.
KHABEISHVILLI (Interpreted): The United States can introduce sanctions. The time has finally come now. This should be done before we get into the swamp that we cannot get out of.
(END VIDEOTAPE)
SOLOMON: And let's bring in now Clare, who joins us live. So, Clare, give us a sense, as you pointed out in your piece that the protesters have grown more determined, these protests have also grown larger in recent weeks. What happens now? Is this the type of thing that the President can veto? Just give us a sense of what happens next.
SEBASTIAN: Yeah. So, we probably have a couple more weeks of procedural elements here, Rahel. The President has 10 days to veto this. She is pro-European and has promised to do so. The government then after that has another two weeks to override that veto and they say they have enough votes to do that. And I think for the protesters, the hope now is that their pressure can be enough in those next couple of weeks to try to force the government's hand, to try to get them to back down.
[11:10:00]
As I showed you in the piece, there is precedent for this. The protests have worked in the past. They did last year. So, certainly, that is the hope. But look, today, right now, you're seeing, it's relatively peaceful. There were earlier pockets of violence outside Parliament. We saw protesters try to break down, and in one case succeed in breaking down these temporary barricades outside of Parliament. There also some scuffles there with police. That seems to have calmed down now. But that, of course, echoed scenes that we saw inside Parliament as well where scuffles broke out, and we saw verbal blows as well being exchanged by the government, the ruling parties and the opposition.
This is Georgia at a crossroads, really. If they pass this law, that does risk their hopes of European integration. This is something that the EU has been very clear about. And that is something that according to the latest poll, some 80 percent at least of the Georgian public support. So, this right now, we look at these peaceful scenes, but still a very volatile situation. Rahel.
SOLOMON: Yeah. Clare Sebastian, great reporting. Good to have you. Thanks, Clare.
All right. Turning now to Donald Trump's hush money trial, this just in, the New York State Court of Appeals has denied Donald Trump's request to lift the gag order placed on him by the judge in the hush money trial. And right now, Michael Cohen is back on the stand again. This is day two. It's going to be critical testimony that could make or break things for the prosecution. Prosecutors today are trying to nail down their case and show that Trump was directly involved in covering up payments made to Stormy Daniels ahead of the 2016 presidential election.
Cohen testified that invoices he'd submitted in 2017 were to get reimbursed for payments that he made to Daniels and were not for valid legal fees. The defense could begin cross-examination as soon as today, and this is widely expected to be quite volatile. Sparks could fly, as many expect, as Trump's lawyers take off the gloves and attack Michael Cohen's credibility.
Let's bring in now CNN Justice Correspondent Jessica Schneider, who has been following all the latest on this. So, Jessica, just give us a sense of what has happened so far this morning. As I said, just as soon as the defense gets their turn, things could take a turn.
JESSICA SCHNEIDER, CNN JUSTICE CORRESPONDENT: Absolutely. And it does sort of seem like we're getting to the end of this direct examination by Michael Cohen. In fact, he has just talked about the 2018 FBI raid that was undergone at the hotel he was staying at. And apparently, right after that was the last time he said he ever spoke to Donald Trump. I guess they talked on the phone. And then, Cohen said that Trump said to him, don't worry. Everything is going to be OK. Stay tough. You're going to be OK. And then Cohen said it was the last time they spoke.
So, it's very possible that we're beginning to wrap up the direct examination here, and then we'll move on to that what could be a very fiery cross-examination. But, what prosecutors have really done especially late afternoon yesterday into this morning is get Cohen to testify more and more and more details about Trump's knowledge and involvement in this hush money payment. Plus, we've been seeing the fallout from that payment. There was really a notable moment this morning when Michael Cohen testified about that notable Oval Office meeting that happened in early February of 2017. It was less than a month after Trump took office. And that's when Cohen says Trump asked him about whether he was OK with money, presumably referring to the Stormy Daniels payment that Cohen made.
So, Cohen said this. He said "He asked me if I was OK. He asked me if I needed money. And I said, no. All good." He said "because I can get a check. I said, no. I'm OK. And he said, all right. Just make sure you deal with Allen, and that meant Allen Weisselberg, who was handling all of logistics of Michael Cohen's reimbursement. So, what we saw this morning was yet another instance of Michael Cohen showing just how involved and in the know Donald Trump was about this deal. That comes on top of what we saw yesterday afternoon where Michael Cohen gave multiple accounts. In fact, I counted at least six instances where he said Trump was completely looped in and very involved with the hush money deal.
So, Rahel, the question will remain, how effective has this been with the jury? The defense is going to come in, presumably maybe this afternoon, and try to tear Cohen down. They're going to bring up the fact that he pleaded guilty to multiple crimes, including lying to Congress, that he has often changed his story. Prosecutors actually just got part of that out in recent testimony where Michael Cohen continued to lie for Donald Trump, saying that this affair and the hush money deal never happened in 2017 and 2018.
So, prosecutors are trying to get all of that out before the defense brings it up and tries to tear Michael Cohen down. But, it does appear that we're getting toward the end of this direct testimony now where Cohen talks about his last conversations with Trump and the fact that he was still -- despite that, had some loyalty toward Trump. Rahel.
[11:15:00]
SOLOMON: Yeah. Really fascinating to see sort of the prosecution trying to take some sting out of whatever may be --
SCHNEIDER: Yeah.
SOLOMON: -- coming from the defense on Michael Cohen's credibility and such. Jessica Schneider, good to see you. We'll check back with you a little later in the program. Thank you.
Joining us now is Michael Zeldin, a former federal prosecutor and the host of "That Said With Michael Zeldin", the podcast. Michael Zeldin, good to have you. Let me pose the question that Jessica Schneider just said about the jury, the question of, was he an effective witness? What say you?
MICHAEL ZELDIN, FORMER FEDERAL PROSECUTOR: I think so far so good. Remember, we come into this trial with very low expectations of Cohen. The prosecutors did a very nice job, I think at the outset, humanizing him, saying that he is not a caricature that we've heard about all these years, but he is a flesh and blood human being with emotions and family and the like. So, I think they set the stage for him nicely. And now, in a very sober, methodical way, he is going through the evidence in the case, and I think that evidence is compelling of what he has to say from his personal knowledge, meaning the evidence corroborates everything he says.
And so, you don't even have to like Michael Cohen, although I think he is presenting himself as a likable figure, because everything that he is saying, they're showing him documents to say, and is this what you mean? And is this what you mean? And remember, jury, when David Pecker said this or (inaudible) said that, is that right, Michael? So, everything they're tying together, I think, nicely.
SOLOMON: So, would you say -- I take your point that they've done a good job at humanizing Michael Cohen, making him seem like a human. But, would you say that they have done an effective job at making Michael Cohen trustworthy?
ZELDIN: Well, that is going to be the ultimate question for the jury to decide. But, I think that because they're corroborating everything he says with documents or reference to other testimony, that it does make him credible. Now, they are doing the beginnings of taking the wind out of the sails part of his direct examination, meaning they anticipate that defense is going to raise all of these questions of his past and his lying and the like. And they're trying to say, well, Michael, did you do all that stuff? And he is saying, yes, I did. I'm ashamed of it. This is why I did it. And hope that the jury says, you know what, I get it. I understand a guy whose life was circling around the son of Donald Trump for a decade, who felt completely abandoned by Trump, would be angry about it. I think that's a normal emotion and it doesn't necessarily impact credibility.
SOLOMON: Michael, I heard you say last week that you felt like the prosecution had presented a pretty strong circumstantial case. Michael Cohen was obviously the star witness for the state. I'm curious if you think that they have gotten any farther along in terms of actual corroborating evidence, documents, and it to become a stronger case than just circumstantial.
ZELDIN: Yeah. I think that that is exactly what Cohen is doing. You could have a defense argument that says, oh, this is all circumstantial. Nobody has put words in the mouth of Donald Trump. Nobody has put his hand writing on anything. But, now comes Michael Cohen. He says, no, not so fast. Yes, you have all the circumstantial evidence. But, I was in the room with Donald Trump when he said this. I was in the White House with Donald Trump when he said that. So, he is the direct evidence link to the circumstantial evidence. That I think is what makes the case stronger. It's not to say they'll get a conviction. They could get hung jury.
But, I think Cohen closes that outlet for the defense to saying circumstantial, reasonable doubt, nobody knew anything. Donald Trump was taken advantage of by Michael Cohen. And maybe he'll even say, it was taken advantage of by Allen Weisselberg, who remains the big mystery in this case. What are you going to do about his absence?
SOLOMON: And Michael, we know that the court has just taken a break. So, I'm curious, we know -- we expect the defense to begin cross- examination today. What are you watching for once that begins? I mean, there was so much speculation, and dare I say, intrigue about what this is about to look like. I mean, what are you watching for when the defense gets its turn?
ZELDIN: Whether they overplay their hand. I thought that in the second day of the Stormy Daniels testimony, they really went out at her vengefully, and I thought that she came off sympathetically, and that the prosecutors made a big mistake in the way they attacked her. Now, Cohen is not Stormy Daniels. There is the gender dynamic between the prosecutor and defense in that situation. But, if they go after Cohen too hard and make him sympathetic, then I think they'll have made a big mistake.
[11:20:00]
I think they have to be very careful and try to stick to evidence that indicates Donald Trump's lack of knowledge and participation in this, way more than saying Michael Trump, sorry, Michael Cohen is a liar and don't believe him no matter what he says. I think that's not a viable strategy for them.
SOLOMON: That's a fascinating point. So, essentially, you sort of stay on focus in terms of what you're trying to accomplish. Be careful not to attack too hard Michael Cohen because it could backfire in the eyes of this jury who is watching. Michael Zeldin, please don't go far. Please stick around. We're going to have more on the testimony a little later in the show. Thank you. Also for minute-by-minute updates from inside of the court, you can see that on the left side of the screen.
But, we do want to get to some breaking news now that we're following out of the state of Florida. At least eight people have been killed and another 45 hurt after a bus crash in Marion County. The Highway Patrol says that a bus was carrying farmworkers when it was involved in an accident with a pickup truck. I do believe that these are live pictures there. Officials say that it appears the two vehicles sideswiped each other which then led to the bus veering off the road that we are hearing and seeing here. It looks like you can see -- I mean, clearly, you can see heavy police presence there on this road.
I'm not exactly familiar with Marion County. But, from the looks of this live picture, it does look to be in a suburban area or a more remote area. But, we'll obviously get these details as we learn them, but really serious developments, a bus crash killing eight people, injuring 45 in the state of Florida. Several of those people injured we do know are in critical condition. We continue to follow it for you.
All right. After a break, is a new trade war on the horizon? Still ahead, the U.S. announcing billions of dollars in tariffs on a variety of Chinese products. We'll take a look at why and what the fallout may be. Plus, the numbers are in, and American businesses still feeling the pressure of inflation. Coming up, we're going to take a look at the latest wholesale inflation report, PPI, coming up next.
(COMMERCIAL BREAK) SOLOMON: Welcome back. U.S. President Joe Biden is ratcheting up America's -- or concerns about America's trade war with China, increasing tariffs on a range of Chinese imports. The tariffs affect around $18 billion in products, including electric vehicles, steel, aluminum, solar cells and medical supplies. Those are very steep hikes, some of the rates going from zero percent to 25 percent or 50 percent. Tariffs on Chinese EVs quadrupling to 100 percent. The Biden administration hopes that this move will cripple development of critical technologies in Beijing and prioritize U.S. production.
Joining us now from the White House is Arlette Saenz. Arlette, tell us a little bit more about what the White House is saying, because as I said, this is sort of igniting concerns now about potential trade war with China and how Beijing may respond to this.
ARLETTE SAENZ, CNN WHITE HOUSE CORRESPONDENT: Yeah, well, President Biden is seeking to ratchet up some pressure on China with this new announcement that he would increase tariffs on about $18 billion worth of Chinese imports over the next two years.
[11:25:00]
But, it also comes as you have a political campaign that's playing out this year. Former President Donald Trump and Republicans have sought to paint Biden as being weak on China. So, moves like this, a try to show that the President is taking a toughened up stance against China, especially when it comes to trade. It comes as both Trump and Biden are vying for those middle class workers in key industrial states like Michigan and Pennsylvania, states that are critical to Biden's so- called "blue wall". Those are states where the manufacturing industry are really key to jobs there. And what Biden is trying to argue at this time is that he is focusing on domestic manufacturing when it comes to industries like clean energy and also semiconductor chips.
So, if you take a look at the tariffs that he is imposing over the course of the next few years, as you mentioned, there is 100 percent tariff on electric vehicles. That is actually something that's a very symbolic move, because at this time, the number of EVs being imported from China is quite a low number. But, there is also an increase in tariffs when it comes to solar components, about 50 percent, and all other tariffs will go to 25 percent. That can apply to things like steel and aluminum and batteries as well.
Now, this move by the Biden administration comes after they were conducting a review of some Trump-era policies. Back when Trump was in office, he added enacted about $300 billion in tariffs on Chinese imports. Those are tariffs that the Biden administration has largely kept in place, even as Biden had opposed them as a political candidate. Now, going forward, Trump has also pledged to increase tariffs across the board if he were to be reelected. That includes an overall tariff increase of -- to 60 percent on all imports coming in from China.
But really, this comes at a consequential time in the presidential election as both men are trying to make inroads with middle class, working class voters. And what Biden is trying to show here is that he has American interests, American manufacturing top of mind, as he is trying to make this pitch to voters heading into November.
SOLOMON: Yeah. Certainly a domestic issue, although concern remains over how Beijing will respond to this. Janet Yellen, the Treasury Secretary, admitting yesterday that we could see significant retaliation. We shall see. Arlette Saenz live for us at the White House. Arlette, thank you.
Well, American businesses will have to wait a little longer and apparently consumers too for inflation to cool. Just released today, the April Producer Price Index shows that wholesale inflation picked up last month to its highest rate in a year, up 2.2 percent from the year before. Now, on a monthly basis, prices rose half a percent in April. Tomorrow, we will get an even more critical read on inflation, the Consumer Price Index or CPI.
A lot to break down here. So good to have today Kenneth Kim. He is a Senior Economist at KPMG. Kenneth, great to have you. So, just walk me through your top line read of this report. I mean, we get CPI tomorrow. But, just having read this report, what's your read on this?
KENNETH KIM, SENIOR ECONOMIST, KPMG: Yeah, thanks Rahel. Great to be here. Yes, inflation is running hot. As you mentioned, PPI came in at 0.5 percent. The market expectation was 0.2 percent. And moreover, March Producer Price Index was actually revised lower, now down 0.1 percent. So, the jump between the downward revision to March and April is quite substantial. On an annual basis, Producer Price Index is running at 2.2 percent, which is higher than the 1.8 percent we saw in March.
SOLOMON: And how would you explain the reversal of fortunes, if you want to call it that that we've seen with prices? I mean, at one point, things seem to be moving in the right direction. And even with consumer inflation, we're starting to see prices pick back up. How would you explain why that's happening and where that's happening?
KIM: Well, it's also a sign that the economy is doing pretty well to support the higher prices. First of all, we have seen wages are rising. We have had minimum wage rates go up throughout the nation. In California, the minimum wage went up to $20 per hour just last month. So, there are contributing factors for the pickup in inflation. Of course, we don't want inflation to continue on this trend in the months ahead.
SOLOMON: Yeah. I mean, if you are at the Federal Reserve looking at a report like this, and again, we'll get the consumer price inflation report or Consumer Price Index report tomorrow, what do you do with data like this? I mean, the hold for longer. I mean, what do you think they're thinking?
KIM: Yeah. That's exactly right. So, we've recently heard the refrain higher for longer, hold for longer.
[11:30:00]
So, certainly, today's PPI data points to that case, higher for longer. In terms of CPI tomorrow, of course, we'll have to see what the actual results for April show. So, in April, the market is looking for a slight step down in the annual rate of consumer price inflation to 3.4 percent from 3.5 percent in March. Obviously, if there is disappointing numbers tomorrow, then certainly higher for longer, for sure.
SOLOMON: Yeah. And when we say higher for longer, just to put a fine point on, we mean higher rates for longer time, just be very precise about it.
KIM: Yeah. Sorry.
SOLOMON: Kenneth, any -- right, any sort of silver linings you see where prices are falling. One thing that got my attention in the PPI report is that apparently prices for fresh and dry vegetables fell almost 19 percent. Any silver lining do you see where prices are sort of cooling?
KIM: Yes. So, food inflation in the PPI report, it did come in negative, which is a good sign for consumers, particularly when they're shopping at the grocery stores every week. So, that was a good sign. The other sign that was not so good was that the services component of PPI came in at 0.6 percent. So, a tenth higher than that overall 0.5 percent print. So, you had some offsetting factors, which food was lower, but then we did get higher services.
SOLOMON: Yeah. I mean, listen, when the message, when the consensus is that rates will be higher for longer, I think many people will appreciate the silver linings, you take what you can while you can. Kenneth Kim of KPMG, great to have you today. Thanks so much.
All right. Coming up for us, Blinken any moment will be speaking in Ukraine. We will take you there just as soon as it happens. Also here in New York, from Trump fixer to Trump foe, Michael Cohen is back on the stand in Donald Trump's hush money trial. Can prosecutors cement their case during today's critical testimony? We'll have an update on what's being said in the courtroom, just minutes away
(COMMERCIAL BREAK)
SOLOMON: Welcome back. You are watching CNN Newsroom. I'm Rahel Solomon live in New York. And here are some of the international headlines we're watching for you today.
U.S. officials tell CNN that Israel now has enough troops around Rafah to launch a full-scale incursion. Now, such a move would be in direct defiance of U.S. President Joe Biden. Overnight, Israeli forces ramped up their attacks in central Gaza. According to hospital officials, the strike killed dozens of Palestinians.
[11:35:00]
Russian President Vladimir Putin is heading to China this week for a summit with President Xi Jinping. The trip will be Putin's second visit to China in less than a year, and first since he was reelected without any real opposition. The two-day summit begins on Thursday. And in India, the search for survivors has ended in Mumbai a day after
this billboard came crashing down in a storm. Police said that 14 people were killed and more than 70 people were injured, many critically. The owner of the advertising agency that put up the billboard reportedly cannot be located.
All right. Let's turn back to New York in Donald Trump's hush money trial with former Trump Attorney Michael Cohen back on the stand. Prosecutors are laying out the heart of their case in Donald Trump's trial. Now, Cohen is testifying today that he was reimbursed the $130,000 that he paid adult film actress Stormy Daniels. He says that the invoices he filed were for that hush money payment and not, not for any legal work he did for Trump, he says. Things are expected to get quite heated in court when Cohen faces off with Trump lead attorney Todd Blanche. That could happen as soon as today.
Let's bring back CNN Justice Correspondent Jessica Schneider, who is back with us from Washington. So, Jessica, my understanding is that the court is also back from a break. Give us a sense of what we've seen thus far and what's happening right now.
SCHNEIDER: Yeah. I'm just following up with the reporters in the courtroom just because we're just back from break and questioning is continuing from prosecutors. They want to talk to Michael Cohen about his former attorney Robert Costello. And it's interesting. When the prosecutor started, she said, are you familiar with an attorney by the name of Robert Costello? And instead of immediately answering, Michael Cohen just side. It turns out that Robert Costello actually did testify before a grand jury and he called Michael Cohen a lie, cheat, steal. So, despite their previous attorney-client relationship, Robert Costello has spoken out very disparagingly toward Michael Cohen.
And this as the prosecution really getting out all the bad stuff it can about Michael Cohen before the defense gets up for what could be a brutal cross-examination. And like I said before, I think we're nearing the end of this direct testimony, because just before the break, Michael Cohen talked about his last interaction with Donald Trump. It was right after the FBI raid of his hotel that he was staying at in 2018. He said he heard from Donald Trump afterward, basically saying you'll be fine. Stay strong. And oh, yeah, don't flip. And apparently, that was the last time that Michael Cohen and Donald Trump spoke with each other.
So, presumably, all of the interactions have already been documented by the prosecution. And now, they're probably going to take a little bit of time before they are wrapped up with direct examination, getting out all of the bad stuff that they anticipate the defense might bring up in cross-examination.
So, Rahel, that is likely why we're seeing this discussion begin about Robert Costello and the bad things that he might have said about Michael Cohen, because remember, Michael Cohen is a convicted liar. He pleaded guilty to multiple federal charges, including lying to Congress. So, again, the prosecution wants to get this out there before the defense brings it up at cross. SOLOMON: Yeah, pleading guilty to those crimes in 2018. Jessica, give us a sense of the color in the courtroom, because we don't have a camera inside. We rely on our reporters inside to just even give us basic details in terms of temperament, disposition. What have we seen in terms of both Michael Cohen but even the former President Donald Trump?
SCHNEIDER: Well, no doubt there was a lot of animosity between these two men. But, you actually really wouldn't know it from what we're seeing from our reporters inside the courtroom, what they're telling us, especially this morning, things have just been very status quo by the book. Donald Trump has whispered to his attorneys several times. But, the way the courtroom is arranged, from what we understand, is that when you're in the witness box, you actually really don't have a direct line of vision to Donald Trump. You have to kind of lean over and look around because there is -- the way it's configured, you just don't have that direct line.
So, there really hasn't been any interaction between Michael Cohen and Donald Trump between yesterday and today. It seems like every time they take a break, neither of these men look at each other, and that's probably the way it's going to continue. I mean, it's a very -- the relationship has a lot of animosity. And I'm sure that Donald Trump's attorneys have warned him to kind of stay as calm as possible, not erupt at anything Michael Cohen says, and that's actually just what Donald Trump has done so far. There has been no interaction between the two men, and they really haven't even glanced at each other, Rahel.
SOLOMON: Really interesting. OK. Jessica Schneider, thanks so much.
All right. Let's welcome back former federal prosecutor Michael Zeldin. Michael, let me ask sort of follow-up of what we're talking about earlier in the show.
[11:40:00]
Have prosecutors, from your point of view, have they met their burden? Do you think they've connected the dot well enough to Trump?
ZELDIN: Assuming that Michael Cohen doesn't flame out on cross- examination, were the case to end at the end of direct examination, I think they have. There is a big sort of elephant in the room of Allen Weisselberg. He is at the heart of so much of this and it doesn't look like he is going to make an appearance in the courtroom. And so, they got to sort of figure out what are they going to say, both sides, about his absence? And that has -- that's something I'm looking forward to seeing how that's addressed. But, to your specific question, yeah, I think unless Cohen does a really bad job on cross, they have tied the bow around what they wanted their case to look like.
SOLOMON: And how do you think the state has prepared him for cross? I mean, we -- it's well documented, that he can be a bit unpredictable, Michael Cohen. So, what does that process look like, and have you ever had to do that with a client or a witness? ZELDIN: Yes. Absolutely. Yeah. I'm sorry. There is that expression about revenge being a dish best served cold. I think they've said to Cohen, look, Michael, if you want to prevail in your version of the truth here, if you want the jury to believe you, then you have to be as sober on cross as you are on direct. It doesn't help your cause, which is to get your truth out, as you see it to the jury if you react, excuse me, if you react emotionally.
And I think that he has been well prepared by Lanny Davis and the prosecution team. And he understands that. And I think that the prosecution has their fingers crossed, that he can maintain his temper, because he is likely going to be directly accused of being a liar and a scoundrel and all manner of things. And he has just got to say, look, yes, it's true. I own it. I'm sorry. I don't know what more you can ask me, Mr. Defense Attorney or anything it would be. I think is going to be planned at the cross-examination. What do you want me to do? It is in the past, I did it. I admitted, I acknowledge it. I'm sorry for it. But, what I'm telling you right now is the truth. And the prosecutors will say and that truth is corroborated.
And that's why earlier when we talked about, can they go too far in their attacks of him and make him sympathetic, is a line they've got to be careful of.
SOLOMON: So then, following on that, if it is Todd Blanche, what's the first thing you -- coming out of the gate, what's the first thing you ask Michael Cohen? What's the first thing you say?
ZELDIN: Well, that's a great question, because you can either say let's sort of build up to the attack that you are. Michael Cohen, you were the attorney for. You were there. So, now let me turn to and then sort of like, what they call about boiling frogs, the water just keeps getting warmer and warmer. They could do that or they can come right out of the gate hard saying, are you the Michael Cohen who lied to Congress about this? Are you the Michael Cohen who lied about that? Are you the Michael Cohen who lied about that? They could just come out and go guns blazing, if they will. I think I like the frog's approach more than the guns blazing. But, you each prosecutor has their own style.
SOLOMON: Fascinating, fascinating. I personally have always found the sort of drama and theater of law very interesting, probably why I'm married to a lawyer. Great to have you, Michael Zeldin, the former federal prosecutor. Great to have your insights. Thank you.
We're going to take a quick break. We'll be right back.
(COMMERCIAL BREAK)
[11:46:03]
SOLOMON: Welcome back. U.S. Secretary of State Antony Blinken is visiting Kyiv right now and we're waiting for him to speak at a university there. You do see the empty podium. That's after meeting earlier with Ukrainian President Volodymyr Zelenskyy. Now, Blinken's trip comes at a critical moment during Ukraine's war against Russia, as Moscow makes gains on the ground. We will take you to those comments just as soon as they happen.
But, in the meantime, I want to welcome in General Mark Hertling. General, always good to have you. Please excuse the interruption if he does come to the podium. But, in the meantime, talk to me a little bit about how important this moment is, Blinken's visit, as it comes in the midst of these gains for Russia's side.
LT. GENERAL MARK HERTLING (RET.), CNN MILITARY ANALYST: It's critically important, Rahel. This is more than just talking about arms and weapons, though. The Secretary of State is there to not only talk about defense and how we will -- can -- how U.S. will continue to support Ukraine, but also their long-term recovery and reconstitution after the war. And he has also held meetings with members of the Ukrainian Parliament about corruption.
This has been -- having spent a lot of time in Ukraine myself, this has been an issue since they separated away from the old Soviet Union as an independent state. The older generation of Ukrainians have always had kind of a concept of corruption, and it is -- has been tamped down over the last two decades. But, there is still elements of it within the society. So, all of these things were topics that Secretary Blinken was addressing, not just with President Zelenskyy, but many of his ministers.
SOLOMON: And General, how would you explain Russia's recent successes? If you had to sort of explain it, I mean, how would you explain what we're seeing on the ground? It seems to be quite a difference. I mean, the momentum seems to be growing.
HERTLING: Well, it's all due, truthfully, Rahel, to the weapons delivery delay that we've seen in terms of the United States supporting Ukraine with specifically artillery, air defense and other weapons systems. It's been very tough over the last seven months. And whenever you have an organization in combat, like Ukraine's military has been, any disruption in the supply lines is going to be exacerbated on the frontlines. So, that delay over the seven months has affected Ukraine's ability to keep the frontline stabilized. And Russia has continued to focus on spreading the front. And what I mean by that is they are attacking in multiple axes, have advanced into Ukraine, and causing the Ukrainian forces to determine, where do we want to defend?
So, you're seeing Ukraine defend in multiple directions, such as in Donetsk (ph), against rockets coming in to -- and missiles coming into Kharkiv. And Sumy is a new area of operation that the Russians are trying to approach. So, all of those areas, not just from ground sprites and the massive amount of Russian artillery, but also the use by -- of Russia by missiles. Glide bonds, as you said during the last hour with Fred Pleitgen, have become a weapon of choice with the Russian, and all of those required defensive systems to counter them. Ukraine has not had those because of the delay in delivery of supplies over the last seven months.
SOLOMON: And now that Congress has approved this aid, and we should say this aid as well from the European Union, I mean, how soon do you think before the momentum can shift? I mean, this isn't like a light switch or a faucet that you just turn on. I mean, how soon, general, do you think that that really starts to show up in a meaningful way on the ground?
HERTLING: Yeah. You've hit it right on the head, Rahel. It doesn't turn on like a light switch whenever you've had those kinds of supply chain interruptions. But, there are some critical elements, and President Zelenskyy has probably talked to Mr. Blinken about those. The key critical elements are artillery and air defense. It's my understanding that President Zelenskyy asked for two more Patriot systems. I'm not sure what that means, truthfully, whether that's individual batteries, the one piece of equipment, or a battery that contains multiple launchers.
[11:50:00]
But, those are very expensive, and they're also part of what the United States military calls HDLD or high demand, low density. A lot of people want those Patriot systems and the rockets, the very expensive rockets that go along with them, but they are in low density. There is not a lot of them to go around, and many of them are allocated against other contingency plans. Now, the uninitiated will say, well, heck, we're not at war anywhere else. So, let's just give them to the Ukrainians. But, unfortunately, you have to be prepared for future activities.
SOLOMON: And general, as we continue to watch, Secretary Blinken is being introduced. So, we will keep our eye on that. But, if I might just ask another question. How do you --
HERTLING: Sure.
SOLOMON: -- think Russia is viewing this moment, both in terms of these advances, but also now this visit, whatever we may hear from Blinken? Well, we have already heard from Blinken. How do you think their perspective is on all of this?
HERTLING: That is a great question, Rahel. I think Mr. Putin was ecstatic about the continued delays in the U.S. Congress voting for this aid. But, what has happened since the vote occurred, and Mr. Johnson, the Speaker of the House, approved the vote and approve the aid, and the fact that Mr. Blinken is visiting immediately, as well as Secretary of Defense Austin, I think that's critical, and it sends a very different message to Mr. Putin and Russia that, hey, we are still on your side. And as Mr. Blinken is probably going to say, we are interested in not only the defense of Ukraine, but the recovery and reconstitution of their country from the massive assaults and war crimes that Russia has committed.
So, I think Mr. Putin was very happy for a period of time, over six months. Now, he is not as much so, and we've seen issues this weekend, as a matter of fact, when Mr. Putin changed his minister of defense from Shoigu to Belousov, and he is also probably going to change a lot of other things to put Russia on a complete war footing.
SOLOMON: Yeah. An economist, which really sort of raised some eyebrows. And then general, while I still have you, let me ask, how important do you think Blinken's words are perceived by Ukrainian troops? I mean, we know that in the midst of this delay, there was an issue with morale. In fact, general, just standby for just a moment. I believe that Blinken is coming to the podium.
HERTLING: Sure.
SOLOMON: So, let's listen together.
ANTONY BLINKEN, U.S. SECRETARY OF STATE: Well, good evening. Dr. Sikorsky, thank you for the introduction, but thank you especially for your decades-long contributions to science and education, and for leading Kyiv Polytechnic Institute through what is such a tumultuous time. And I am so grateful to be here with each and every one of you.
Today marks 811 days since Putin launched his brutal war. Each day, a grinding struggle in which Ukrainians have demonstrated remarkable heroism and suffered immeasurable loss. A year ago, I spoke at Helsinki about how Putin's aggression against Ukraine had been a strategic failure for Russia, and what it would take to ensure that it stayed that way. Today, I'm here in Kyiv to speak about Ukraine's strategic success, and to set out how, with our support, the Ukrainian people can and will achieve their vision for the future. A free, prosperous, secure democracy, fully integrated into the Euro-Atlantic community, and fully in control of its own destiny.
We're meeting at a critical moment. Putin is ramping up yet another offensive against Ukraine in Kharkiv and across the east, sending wave after wave of Russian soldiers, Iranian drones, North Korean artillery, and tanks, missiles and fighter jets built with machines and parts supplied by China. The coming weeks and months will demand a great deal of Ukrainians, who have already sacrificed so much. But, I have come to Ukraine with a message. You are not alone. The United States has been by your side from day one. We are with you today. And we will stay by your side until Ukraine's security, its sovereignty, its ability to choose its own path is guaranteed.
And we're far from your only friend. Dozens of countries around the world are not just rooting for Ukraine's success. They're helping you achieve it. Now, after the delay in approving the latest U.S. assistance package to Ukraine, a delay that left you more vulnerable to Russia's attacks, some Ukrainians may be wondering whether you can count on America to sustain its commitment.
[11:55:00]
The $60 billion aid package that was approved by our Congress with overwhelming support across both political parties and both houses of Congress, I think demonstrates that you can. And a significant majority of Americans believe we should continue to provide assistance to Ukraine. Indeed, the American people's support for Ukraine has been consistent over the course of the war. It has never wavered. Americans understand that our support for Ukraine strengthens the security of the United States and our allies. They understand that if Putin achieves his goals here in Ukraine, he won't stop with Ukraine. He'll keep going. For when in history has an autocrat been satisfied with carving off just part or even all of a single country? When has that satisfied Vladimir Putin?
At the same time, the American people want to know that we have a plan for getting to the day when Ukraine can stand strongly on its own feet, militarily, economically, democratically, so that America's support can transition to more sustainable levels. The Ukrainian people want the exact same thing. They don't want to have -- they do not want to have to rely on others to guarantee their security and their prosperity. And we do have a plan. And we're working together with Ukraine and a wide network of partners to realize it. And what I want to speak to you about this evening is what that plan looks like and how we're going to fully achieve it.
First, we're helping to ensure that Ukraine has the military that it needs to succeed on the battlefield, to secure a just and lasting peace, and to deter future aggression. Anyone who doubts your ability to attain this goal should just look at what you've already accomplished. For two years, two months and 21 days, you have denied Putin, his goal of erasing Ukraine from the map, and subsuming it into a greater Russia. You beat back Moscow's assault on Kyiv and foiled his plot to install a puppet government. You've taken back more than half of the territory that Russia seized in the first weeks of its full-scale invasion.
You pushed Russia's naval fleet out of the Black Sea without a fleet of your own. Any territorial gains that Russia has made over the last year have come at tremendous cost to the Kremlin, in lives lost, in military equipment destroyed. You fought with courage and creativity, developing new weapons and new tactics to deploy them. People from every region, every community, every institution, has stepped forward to serve, including at this university where students, alumni, teachers and other employees of Kyiv Polytechnic have answered the call to defend their homeland, putting aside their studies, their careers, their dreams, leaving loved ones behind.
88 of those men and women gave their lives for Ukraine's freedom. Many of their names are etched in the memorial on campus that I just visited with the rector. They include an aspiring book illustrator, a cancer researcher, a marathon runner, a musician who opened Kyiv's first school of rock & roll, a veteran who lost both of his legs fighting against Putin's previous invasion in the Donbas and volunteered to serve again when Putin re-invaded in 2022. Like countless Ukrainians, these citizens never asked others to fight for them. Indeed, all that Ukrainians have asked is that you get what you need to defend yourselves and your right to survive as a nation.
Your recent mobilization was a difficult decision, but a necessary one. The defenders who have so courageously held the line for more than two years need help. They need rest. This will allow both, while providing your military with additional troops to fight off bigger invading forces. The mobilization will also allow you to harden your defenses to build more units to take the fight to Russian aggressors. Now, our joint task is to secure Ukraine's sustained and permanent strategic advantage, so that Ukraine can not only deliver on the battlefield today, but deter and defend against future attacks. As President Biden said, we want Ukraine to win, and we're committed to helping you do it. In the immediate term, the United States and dozens of other countries
will get Ukraine the assistance that you need and we'll get it to you quickly. We're going to help you hold off Russia's attacks, make it harder for them to strike you, and keep the Black Sea open so you can keep.